Videocon To Enter Power Sector

Videocon Industries, consumer electronic goods maker, may hive off its power business by January 2008 and it may sell stake in power business to private investors or partners. Analysts say Videocon''s power business may be worth around Rs 15,000 crore when compared with the yet to be listed Reliance Power.

Videocon on Wednesday called bids from global engineering equipment companies for its $1.5 billion power plant in Gujarat. Videocon plans to invest $5 billion in power projects and intends to build 5,000 megawatts of electricity generation capacity in the states of Gujarat, West Bengal and Chhattisgarh.

It is already turning to the overseas community in a big way. Market analysts say Videocon has been organising several road shows in global markets like Singapore, US and London to woo international investors. Market watchers say with merchant bankers like Morgan Stanley and Lehman Brothers on board, a big private equity placement may be on the cards.